Mercedes Benz India Case Porter’s Five Forces Analysis

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Mercedes Benz India has actually acquired a number of business that assisted it in diversity and development of its product's profile. This is the comprehensive explanation of the Porter's model of 5 forces of Mercedes Benz India Company, given in Exhibition B.


Mercedes Benz India is one of the leading business in this competitive market with a number of strong rivals like Unilever, Kraft foods and Group DANONE. Mercedes Benz India is running well in this race for last 150 years. The competition of other business with Mercedes Benz India is rather high.

Threat of New Entrants

A variety of barriers are there for the brand-new entrants to occur in the customer food industry. Just a couple of entrants be successful in this industry as there is a need to understand the customer need which needs time while current competitors are aware and has progressed with the consumer commitment over their products with time. There is low threat of brand-new entrants to Mercedes Benz India as it has quite big network of distribution globally controling with well-reputed image.

Bargaining Power of Suppliers

In the food and beverage industry, Mercedes Benz India owes the biggest share of market needing higher number of supply chains. This triggers it to be a picturesque purchaser for the providers. Any of the supplier has never ever expressed any complain about rate and the bargaining power is likewise low. In reaction, Mercedes Benz India has actually likewise been worried for its suppliers as it thinks in long-lasting relations.

Bargaining Power of Buyers

Thus, Mercedes Benz India makes sure to keep its clients pleased. This has led Mercedes Benz India to be one of the devoted business in eyes of its buyers.

Threat of Substitutes

There has actually been a terrific hazard of alternatives as there are substitutes of some of the Nestlé's products such as boiled water and pasteurized milk. There has actually also been a claim that a few of its items are not safe to use leading to the reduced sale. Therefore, Mercedes Benz India began highlighting the health advantages of its items to cope up with the replacements.

Competitor Analysis

It has actually become the second largest food and beverage market in the West Europe with a market share of about 8.6% with only a distinction of 0.3 points with Mercedes Benz India. Mercedes Benz India brings in local clients by its low expense of the item with the regional taste of the products keeping its very first location in the global market. Mercedes Benz India company has about 280,000 staff members and functions in more than 197 nations edging its rivals in lots of regions.
Note: A quick comparison of Mercedes Benz India with its close rivals is given in Exhibit C.

Exhibit B: Porter’s Five Forces Model